Financial Key Performance Indicators in Engineering Companies

František Milichovský

doi:10.3311/ppso.7810

Abstract

Performance is usually defined as system of monitoring individual corporate processes on way to produce the appropriate changes in organizational culture, systems and processes. These activities help to achieve optimal performance agreement targets, allocation of resources, information management on possible modifications of business strategyorsharingtheresultscontinuedindividual goals. Due the performance monitoring the companies can find the Key Performance Indicators, also known as KPIs that help to all organizations define and measure progress toward corporate goals. The objective of this paper is to find trend of improvement by measuring effectiveness of marketing activities. For this reason there was used questionnaire survey, focused on engineering companies operating in Czech Republic. Results and discussion of the paper are based on the analysis of secondary sources and selected data of questionnaire survey, which are involved on measuring the performance of Czech companies. To process the results of the questionnaire survey, there were used both basic types of descriptive statistics and factor analyze on the selected dataset. The data were processed by using the statistical program IBM SPSS Statistics 22. The conclusions provide characteristics of the limitations of research and its potential further direction.

Highlights

Nowadays, business environment has become highly competitive because of the globalisation
Results and discussion of the paper are based on the analysis of secondary sources and selected data of questionnaire survey, which are involved on measuring the performance of Czech companies
The correct choice of performance indicators is important part of the corporate strategic process, because well-defined key performance indicators (KPI) can help to the companies realise plans and controls due their priorities

Summary

Introduction

Business environment has become highly competitive because of the globalisation. The long-time business strategy cannot use traditional techniques to corporate improvement. That is important area on which Czech companies must focus on. They try to connect different performance systems like social, economic and environmental with corporate performance system. These three dimensions impact whole measurement system of performance and effectiveness (Kocmanová et al, 2011; Coombes and Nicholson, 2013; Pollard and Šimberová, 2012). That is due to different both corporate environment and relationship with stakeholders. For every company there exist various conditions and stakeholders requirements, which are not similar as well (Kaňovská and Tomášková, 2012)

Objectives

Results

Discussion

Conclusion